New minimum wage could mean fewer pay rises

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Pay rises may not match increasingly giddy expectations for this  year
Pay rises may not match increasingly giddy expectations for this year

Politicians must act to make sure a higher minimum wage does not leave thousands stuck for years on the lowest possible pay, a leading think tank is claiming.

In cities like Sheffield and Hull almost a third of workers can expect higher wages, the Resolution Foundation claims, but it fears that “one wage towns” could develop where employers cope with higher salaries for their most junior staff by failing to put up pay for more experienced workers.

Resolution 

The Office for Budget Responsibility has said the new policy could cost 60,000 jobs.The Resolution Foundation was mentioned by the Chancellor George Osborne when he announced the higher wage in the summer budget.

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